Strategic shocks: 10 game changers for 2040.

 

 

 

 

 

 

 

 

More free stuff! One of the ideas that my co-author Oliver had for the book (Future Vision) was to end with a series of strategic shocks. This was actually a book idea I had way back – ‘5 Ideas to Turn the World Upside Down’, but it works quite well in condensed (or is that expanded?) form here I think. Here are 3 of the 10…

The Second American Civil War
Don’t say we weren’t warned! Bruce (The Boss) Springsteen’s ‘Wrecking Ball’ anthem ‘we take care of our own’ and the ‘Occupy Wall Street’ movement hinted at what was coming. The nascent failure of US capitalism to deliver the American Dream has created the great divide. In the blue corner, the tea-party traditionalists and the do-what-is-good-for-me democrats and in the red corner, everyone else who have been persistently marginalized and exploited to pay for the extraordinary US global debt and the failure of ‘small’ government to protect its citizens against ‘natural’ phenomena like hurricanes, flooding, bird ‘flu and the hell-bent erosion of the country’s natural assets leads to what is effectively a ‘Balkanization’ of the US.

Bird ‘flu pandemic kills 500m worldwide
It started innocuously enough. Well, not really as nobody had been inoculated against this strain of bird ‘flu. We learned later that the fatal construct was an illegal cock-fight in the Canary Islands when of all places where local canaries were being pitched against saffron finches from the Amazon. One of the bird owners became contaminated after receiving scratches from both species. And the incubation period; well it was a lightning 48 hours. Of course, all of this needed something else. Unfortunately the owner was a big rock and roll fan and hopped on a plane immediately after the fight to join 100,000 young kids at Shay Stadium where an ageing Lady Gaga was performing on her ‘Really Ga-ga’ tour. The rest, as they say, is history.

The moon becomes a colony of China
This is a reprise of the moon landings of almost 80 years ago. Space Race 2 has been between Russia and China and burst into life when the Russian Space agency, Roskosmos, announced a manned mission to the Moon in 2035. The US had long given away any interest in Moon landings but it was the Chinese through their Agency – the CNSA – who were the challengers. Their Long March programme was more than a wish to lead the world in the science of manned space travel; it was also a push to lead the world in extra-terrestrial colonization.

Peak oil and peak everything makes the search for new sources of raw materials – and indeed new materials – a critical requirement. Get in first and the cosmos is your oyster.
On 1 April 2040 Zai Zigzag in Shenzhou 21 blasted off from Jiuquan Space Launch Center in Inner Mongolia with his crew of 11 and just 7 hours and 24 minutes later, the five yellow stars on the Chinese national flag were fluttering in the moon breeze at the top of Mons Huygens. The earth’s satellite was now a colony of the Chinese.

FutureVision

 

Judging by the recent jump in subscribers to the blog some of you seem to like free bits of my new book so here’s a tiny bit more – an overview of the 4 scenarios upon which the book is based. The visual, by the way, is a new map to go with the book (A timeline history of the world 1970-2040). More on the map very soon.

Scenario 1 – Imagine
This is a world where people are fully aware of the threats to the future such as climate concerns, but have an unshakeable belief in the power of science, technology and free markets to make life better from one generation to the next. It is a mind-blowing new world of technical challenges and radical inventiveness and re-engineering where everything is connected to everything else.

A fast sci-fi world of genetic manipulation, avatar assistants, virtual buildings, robotic soldiers, artificial intelligence, quantum computing, moon hotels, nanotechnology and geo-engineering, all ultimately driven by and reliant on free market capitalism. Clean technology is booming, especially nano-solar, fusion power is coming online and food and water shortages have both been addressed by the smart use of technology. Automation means that everyday life is accelerating while digitalisation, virtualisation, miniaturisation and ubiquitous connectivity mean that whole industries are being turned upside down and people are starting to question what reality really is. Fundamentally it is a world driven by human imagination and inventiveness.

Overall, the speed and depth of change is quite breathtaking. The Internet, for example, looks nothing like it did in 2012. This exponential change makes some individuals, especially older people – of which there are now so many – rather anxious, particularly when systemic risks and cascading failures emerge. But overall life is good, although in most instances it’s no longer life as we would know it today.

Scenario 2 – Please, Please Me
This in many ways is the familiar world that we had become so used to during the Long Boom (1991 – 2007) prior to the global events of 2008. It is a world of economic growth, free markets, individualism, consumerism, selfishness and self-indulgence where people work harder and longer and where greed and status remain key – and unapologetic – drivers of much human activity. It is a world of money where successful people, especially celebrities, are envied and copied by followers worldwide. It is a world of luxury, displacement and detachment too – for those that can afford it. The past is increasingly irrelevant in this world. Which celebrates newness and novelty and delights in planned obsolescence, over supply and over consumption.

One significant development is the dominance of the BRIC (Brazil, Russia, India & China) and N11 (Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, Turkey, South Korea, and Vietnam) economies, especially the emergence of an endless stream of cutting edge technology companies from these markets.

In short this is a world that’s all about me, myself and I. A narrowly focused narcissistic world where it’s everyone for themselves and to hell with the consequences for everyone else. It is a world fundamentally driven by greed that, some might argue, has lost its way by confusing rapid movement with meaningful progress.

Scenario 3 – Helter Skelter
This is a world where a series of unexpected events create a general feeling of fear and fragility. The impact of climate change, the implosion of global financial systems and institutions, cyber crime, soaring food costs, high taxation and the ever-growing disparity between rich and poor mean that most people turn their backs on the notion of a single global economy. A few people with money remain relatively engaged in the global information economy, yet live in gated communities or areas with private security. Those with much less, especially those with no job, no money and no prospects are angry. They feel betrayed by the promise of globalisation and withdraw both physically and emotionally. The promise of free markets and democracy fade and people all over the world rediscover an angry appetite for parochialism, protectionism and regulation; concepts they themselves describe as a healthy self sufficiency.

It is a world running on empty where global politics drifts rightwards, nationalism and tribalism re-emerge and globalisation and localism are uneasy bedfellows. Ultimately it is a world driven by fear.

Scenario 4 – Dear Prudence
In this future people are alarmed about the health of the planet and especially the pervasive influence of materialism and individualism upon their lives and have therefore decided to take personal responsibility and do something about it. This is a world of sustainability and switching things off, of buying less stuff and seeking to reconnect locally with the simpler pleasures of life. It is a world where many things go backwards in a sense and one where ethics, values and reputation really count. Overall, most people are surprisingly happy – a “dark euphoria” Bruce Sterling once called it. This is partly because peoples’ lives have become more balanced and partly because there is a strong sense of common purpose. “Altogether now”, “less is more” and “You can help everyone, everyone can help you” are popular slogans. It is a pessimistic world, yet one that retains a degree of hope.

BTW, the book is out in Australia as an e-book and paper version but the p-version is almost impossible to get in other countries at the moment. It is coming out in China and the UK soon. If you really want to buy a paper version get in touch with myself, Oliver Freeman in Sydney (via Futures House.com)  or Scribe Publications in Melbourne.

Link to the e-book on Amazon.

Link to Penguin Australia (hard copies).

Size does matter and small is best

I really must start writing my monthly brainmail newsletter again soon because much of this material is perfect for brainmail. Nevertheless, here’s a little gem that caught my in-box yesterday morning.

In an experiment conducted (by teams?) at UCLA and the University of North Carolina, two-person teams took an average of 36-mins to assemble 50 Lego pieces into a human figure. The same task took 52-mins for four-person teams.

Apparently, forecasting errors grow larger as teams get bigger and expanding a team’s size can negatively impact coordination, diminish members’ motivation, and increase conflict. (Via Harvard Business Review).

Future Vision – first review

The first print review of Future Vision is out and it’s good. Only thing I’d argue with is that I would say it’s written by 1.5 Australians and not just one.

“In the year 2040, shops will talk to you before you even enter them. Your reputation will precede you like a criminal record and the world you move through will be covered in smart dust.

If you want to know more about what life will be like in 2040, this analysis of four major scenarios (ranging from the cautious to the downright alarming) by two futurists (one of them Australian) identifies all-too-plausible possibilities.

Highly readable, entertaining, thought-provoking and full of informed forecasts it would be foolish to ignore.”

http://newsletters.booktopia.com.au/2012/11-november-buzz.html

Future Vision

 

 

 

 

 

 

 

 

 

 

 

 

 

Future Vision was officially launched today in Australia. I blogged the preface a while ago, so here’s a tiny bit more (part of the forward from an early version) as promised. If you want to buy the book here’s the Amazon/Kindle link.

Forward: into the unknown

Several years ago, an office worker in Tokyo dropped dead at his desk and wasn’t discovered until five days later. This was despite the fact that his co-workers regularly walked past and said “hello.” In a similar incident, a fifty-one-year-old had a heart attack in an open plan office in New York on a Monday morning, but nobody noticed the fact that he was dead until the Saturday, when a cleaner attempted to wake him up to ask whether he was working over the weekend. Apparently it wasn’t unusual for the man to be there because, according his boss, without any hint of irony, “he was always the first to arrive and the last to leave.”

Is this the future? Is this how things will eventually work out for many of the so-called free agents inhabiting anonymous desks inside vast corporations or for the emerging class of digital nomads electronically tethered to virtual offices via a compote of Blackberries and Apples?

The answer is no. It is one possibility. It is one future, but there are many others.
One future might be a cross between Terry Gilliam’s film Brazil and Fritz Lang’s Metropolis. This would be a dystopian future where people are forced to work longer hours for larger bureaucracies in a futile attempt to earn more money to offset rising food prices, higher energy bills, declining real wages, increasing debt and disappearing retirement. Conversely, people might willingly choose to spend more time inside lifeless cubicles at work because, while the work is mind numbing, they feel increasingly isolated and uncomfortable at home.

This could be because the family, as a building block of society, has atomised and more people are living alone, or because a relationship hasn’t turned out as planned and work offers more satisfaction and companionship. Add a pinch of ubiquitous media, autocratic data-driven governments, brain-to-machine interfaces, GPS, RFID, facial recognition, genetic prophesy, predictive modelling and CCTV and, while this future isn’t quite like Orwell’s 1984, the date could be seen by some to be getting closer not further away.

Alternatively, we might see a move in a totally different and much more utopian direction. Maybe we’ll start to see that there’s more to life than dropping dead at your desk and people will start to fight for the right to re-balance their lives in their favour. Perhaps automation – especially robotics and artificial intelligence – will finally deliver on its promise of a leisure society and people will spend more of their time re-connecting with their families and doing more of the things that really interest them. This could also be a world where the state limits freedom of choice in areas such as healthcare and pensions and provides a higher degree of security in return for higher direct or indirect taxation. A sustainable world driven as much by the heart as the head, where local forces start to push back against globalisation and where new technologies are carefully scrutinized for long-term social impact and value. An ethically driven world where physical community is rediscovered and corporations are restrained due to, amongst other things, skills shortages, the high cost of energy and limited raw materials.
A world not dissimilar, in many ways, to the one described many decades ago in Ernst Schumacher’s book Small is Beautiful: Economics As If People Mattered.

And there are many other possibilities, many other paths and many other futures too. How, for example, might oil costing upwards of $200 per barrel change the world? Perhaps people and products would move around less or the high price of food would lead to an unexpected decrease in obesity. What if we invented a new technology based upon photosynthesis that made energy almost free? What if a new ideology capable of challenging free-market capitalism were to appear? Or if the next Russian Empire decided to broaden its borders beyond their current limits. Or what could happen if the heavy use of mobile phones (of which there are already more than 5 billion worldwide) started to cause the death of tens of millions of young people through brain cancer after a long and largely invisible gestation period?

There are many ways in which we can think about the future and looking at the past (i.e. how we got to where we are today) is a good place to start, partly because what happens right now can influence what happens next and also because both are often related to what happened a very long time ago. And there is a third reason. By understanding the complexities of how we got where we are today we will be better served in how we think about the future. Complexity is the name of the game. Of course, history is not always the most reliable guide to the future because nobody owns the facts. The way we interpret the past can cast a long shadow that hides other important facts. Similarly the future can be buried in the fringes of the present, which essentially means that knowing precisely where to look, or who to talk to, can pay dividends and give you a head start compared to less creative and less curious thinkers. Whichever way you look at it, it’s worth remembering that the future is always present.

This is not to say that the process of thinking ahead is not fraught with difficulties, but a bigger problem is time. Thinking seriously about worlds to come takes time, which is in very short supply nowadays. As a result, many organizations focus almost exclusively on short-term issues, which means that reactions are often too immediate and management often consists of racing from one crisis to the next. More often than not, especially in commercial organizations, the focus is on the next 12 weeks (the next financial quarter) or the next 12-months (“results”), which are then compared to the last 12-months. Thinking beyond this, especially 36-months or more ahead, is almost unheard of. As a result, deep questions, along with longer-term opportunities and risks, tend to go unanswered until its too late. And this anomaly is not just a ‘business’ issue. How many of us defer thinking about pensions and superannuation until way past the ideal start date? The economic rise of China went unnoticed by many for many years. In the ‘nineties, world economic forums would get excited by China but then revert to the old concerns about NATO, Japan and the tensions in Europe. But now, while the opportunity is slowly being seen, the risk of a potential reversal, with associated bubbles and concentration risks, is not. The same could be said for fertility or the impact of social media on democracy.

History, as the author and security and intelligence expert George Friedman has pointed out, “can change with stunning rapidity.” If the Chinese economic miracle were to come to an abrupt end, this would create a very different future, parts of which we can instantly imagine if we only put aside the time to do so.

Put in a slightly different way, while there are many trends and traits that at first glance look set to continue for the immediate future, nothing is ever certain – a thought, crisply echoed by the writer JG Ballard, who once said that: “If enough people predict something it won’t happen.” On the other hand we are well aware how expectations are realised in the performance of stock markets so it’s never all one thing rather than another. In fact our favourite word is ‘and’ rather than ‘or’.

The history of prediction is interesting in this context and is littered with false prophets, much as it’s strewn with false profits, and it is important to distinguish between what is probable with what is possible. The best way of doing this is, as the detective Sherlock Holmes once pointed out, is to start by removing whatever is totally impossible and then, whatever is left, no matter how improbable, must be considered as being possible. There is also a technique developed by the Strategic Trends Unit at the UK Ministry of Defence in which probabilities are assigned to specific words. “Will” is assigned a probability of “Greater than 90%” “Likely/probably” is “Between 60% and 90%”, “May/possibly” is “Between 10% and 60% “and “Unlikely/Improbable” is “Less than 10%” However, this is never easy to do. Probability is of little value when engaging with the future, even if we had the time and effort to undertake quantitative analysis. The future is not at the end of a trend line. No wonder then that so many individuals cling resolutely to the past. It’s much easier that way. Similarly, it’s hardly a surprise that so many institutions structure themselves to deal with the immediate present.  It’s much cheaper that way.

But by the time the relevant strategies are in place, the horse has bolted and we are already somewhere new. Most organizations create strategies to deal with yesterday’s problems . But thinking about the distant future is essential if we, as individuals or organizations, are to take full advantage of the myriad of opportunities that lie ahead.

Developing a situational awareness for emergent risks is absolutely essential if we do not want to end up standing on the wrong side of history on an ongoing basis. In our work with organizations world-wide, we have also come to the conclusion that workable short-term strategies have the longer-term embedded within.

All well and good, we can hear you saying, but how can one sell the idea of futures thinking to an organization run by an individual that is focused on that set of numbers that will take shape over the next 12 weeks? The honest answer is that you can’t. However, if you are fortunate to work for an organization with an incoming or outgoing head there is hope because these leaders are either concerned with creating a vision or leaving a legacy and both of these mindsets fit rather well with futures thinking.

Furthermore, dark clouds have silver linings. In our view a critical function of leadership is to embrace the plurality of opinions – of diverging worldviews – in order to have a better chance of making sense of the future. The recent history of reactions to climate change is a case in point. If an organization is facing an extinction event (i.e. new technology, government regulation or customer mindsets mean that current products, services, business models or margins appear doomed) this is precisely the time when closed minds are opened up to new possibilities.

One of the features of good leaders is that they have an understanding of past and present. They understand the historical reasons for failure and success, but also appreciate some of the challenges that lie immediately and more distantly ahead. Outstanding leaders do something else too. They have a vision for the more distant future. More often that not, they see things that others cannot, and while their visions maybe partially obscured they are often able to create and communicate compelling stories about why other people should follow them down a particular road.

This skill can work extremely well, but this too can contain a fatal flaw, which is that individuals and organizations can sometimes end up being held hostage to a particular point of view, or vision, of the future. The more dominant a leader – or organizational culture – the more that people will be drawn into agreeing with a particular point of view and the less that people will seek to challenge either it or the hidden assumptions upon which it’s built. The more credible or powerful a source the less likely we are to think that something they say maybe wrong. The more popular or widely circulated something is the more likely we are to agree with it, especially if we are busy.

Let’s get back to the two dead bodies. Both of the stories about workers dropping dead at their desks were featured in newspapers and TV channels around the world, including The BBC and The Guardian. They were widely circulated on the Internet too. But both were untrue….

(continues)

Culture of extended work hours

Here’s a gem. A study by Mary Noon at the University of Iowa and Jennifer Glass at the University of Texas says that telecommuting allows employers to expand workdays and create an expectation that staff will be available in the evenings and over weekends (Via Harvard Business Review/Monthly Labour Review).

On a related note, 20% of parents with children aged 10 only see them properly once a week according to a study by the Family and Parenting Institute in the UK.

Space oddity

In my book Future Minds I wrote about how physical spaces can impact our thinking. I used examples ranging from ancient cathedrals to mountains, but the one I like best is about the Earth as seen from the moon. Here’s part of the passage from my book.

In 1968, William Anders, Frank Borman and James Lovell spent three days travelling to the moon and were the first humans in history to glimpse its dark side. On the fourth lunar orbit, on Christmas Eve, the crew of Apollo 8 saw something else that had never been seen before. It was an Earthrise. A fragile blue planet rising optimistically above an inhospitable lunar landscape.

Instinctively recognising that this was a significant event, William Anders grabbed a camera and took some photographs. These pictures effectively started the environmental movement back on Earth in the early 1970s and prove, to me at least, that external stimuli can influence our thinking and that attitudes and behaviours that we assume are fixed can be influenced by what is around us.

This view of the Earth has now been experienced many times by astronauts but its effect is undiminished. In fact there is a now condition called the overview effect that refers to the state of heightened consciousness that astronauts experience when they look back at the Earth from a great distance away. Out in space there is a lot of space and this can change your mind.

So what? Well for one thing the image we associate with this event is incorrect. The image that we all know and love and is currently a page on Wikipedia is a fake. The astronauts never saw this. What they actually saw was this…

 

 

 

 

 

 

 

 

 

 

 

Huh? The explanation for this has to do with how our brains deceive us. Our brains like things they’ve seen before. The term ‘cognitive bias’ partly describes this. Once we have formed a view about something, or have an idea in our head, our brains work subconsciously to find evidence to support this view or idea.

Moreover, our brains work subconsciously to filter out any idea, view or data that undermines or contradicts this too. So in the case of the Earthrise, our brains are conditioned to accept sunrises and moonrises that are vertical – that broadly go up and down. We can’t quite cope with a situation where it’s horizontal or right to left. So consciously or subsciouinessly we have edited the image of the Earth rising above the moon so that it more readily reflects our view of ‘reality’

Interesting, don’t you think?

 

Stat of the week

Getting paid increases the risk of you dying according to study.

Classic. You have a slightly higher chance of dying in the days after you get a paycheck, bonus, or Social Security payment, say William N. Evans of the University of Notre Dame and Timothy J. Moore of the University of Maryland. For instance, during the week when the 2001 U.S. tax rebate checks arrived, mortality among 25-to-64 year olds increased by 2.5%, and during the week when dividends are paid to Alaskans from the state’s Permanent Fund, mortality increases by 13%. Higher levels of activity such as driving and recreation after money rolls in are the likely causes of the effect, the authors say.

(Via Harvard Business Review).

Technology Trends

You’ve possibly never heard of the Churchill Club, but it’s essentially a forum where interesting and influential people say interesting and important things – hopefully. One thing they also do is an annual tech trends debate. This year was the 14th and went something like this:

The people:
Kevin Efrusy, Accel Partners
Bing Gordon, Kleiner Perkins Caufield & Byers
Reid Hoffman, Greylock Partners; Executive Chairman and Co-founder, LinkedIn
Steve Jurvetson, Draper Fisher Jurvetson
Peter Thiel, Technology entrepreneur, investor and President, Clarium Capital

The brief:
5 panelists are asked to come up with 2 tech trends that are:
1) Not obvious today
2) Will create explosive growth in about five years time

The 10 Trends:
Trend 1. Radical Globalisation of Social Commerce
(Kevin Efrusy)

Trend 2. Zero Marginal Cost Education
(Bing Gordon)

Trend 3. Massive Sensors and Data
(Reid Hoffman)

Trend 4. All Vehicles Go Electric
(Steve Jurvetson)

Trend 5. A Shift Toward Technocracy: Doing More with Less
(Peter Thiel)

Trend 6. It’s Just the Venture Cycle
(Kevin Efrusy)

Trend 7. Gamification of Everything
(Bing Gordon)

Trend 8. The New Hardware: Bits to Atoms
(Reid Hoffman)

Trend 9. Moore’s Law Accelerates Beyond Silicon
(Steve Jurvetson)

Trend 10. The Beginnings of Bioinformatics; Intelligent Design Over Random Drug Discovery
(Peter Thiel)

If you want to read about each of the trends in detail go here…

Futurists

Well I thought that I spoke fast but you should see this guy in action. If you click on this link you’ll see an ABC show in Australia about the future of the future. Fast forward to 32 minutes or click on the bit on the far right that says Will We Be Gods?

Two thoughts. The first is that futurists seem to segment. There’s the young lot (under 35) who are relentlessly optimistic. The future is very fast and full of batteries. The second lot (50 or 60+) tend to be pessimistic. It’s the end of the world, or at least things used to be much better when they were under 35.

The trick, it seems to me, is to be somewhere in the middle. Personally I’m rather pessimistic about the next 18-months, but hugely optimistic about life from about 2015 onwards. “Just keep swimming” as the fish says in the movie Finding Nemo.

PS. Technology making religion obsolete in the future? I don’t think so.